* C$ higher at C$1.0238, or 97.68 U.S. cents
* Bond prices weaker across curve
By Jennifer Kwan
TORONTO, June 17 (Reuters) - The Canadian dollar edged higher on Thursday as investors were seen taking on more risk following Spanish bond issues that drew strong demand, keeping concerns about Europe's debt troubles at bay.
Spain sold 3.5 billion euros of 10- and 30-year government bonds, at the top of its target range, though yields were high. The well covered auction helped narrow the spread of Spanish yields over benchmark Bunds from an earlier euro lifetime high. [MKTS/GLOB]
"That helped appetite for risk," Adam Cole, global head of FX strategy at RBC Capital Markets in London, said of the auctions.
"(The Canadian dollar) is really being driven by better appetite for risk rather than anything domestic in Canada."
At 7:34 a.m. (1134 GMT), the Canadian currency was at C$1.0238 to the U.S. dollar, or 97.68 U.S. cents, slightly firmer than Wednesday's finish at C$1.0254 to the U.S. dollar, or 97.52 U.S. cents.
Another factor helping investor sentiment was news the Swiss National Bank backed off its pledge to fight an excessive rise of the franc decisively, added Cole. [ID:nLDE65E1W2]
Overnight, the currency failed to punch through its one-month high of C$1.0224 to the U.S. dollar, or 97.81 U.S. cents, which it reached on Wednesday.
Cole said the next key technical levels for the currency are around C$1.0111 to the U.S. dollar, or 98.90 U.S. cents. On the flip side, analysts would be eyeing C$1.0361.
Canadian bond prices moved lower across the curve, tracking U.S. Treasury issues as demand for safe-haven government debt eased after Spain's successful bond auctions. [US/]
The two-year government bond CA2YT=RR sagged 2 Canadian cents to yield 1.781 percent, while the 10-year bond CA10YT=RR fell 20 Canadian cents to yield 3.381 percent. (Editing by Theodore d'Afflisio)
